This post is part of the New Functionality In Microsoft Dynamics 365 Business Central 2024 Wave 1 series in which I am taking a look at the new functionality introduced in Microsoft Dynamics 365 Business Central 2024 Wave 1.
The 10th of the new functionality in the Application section is use general ledger account revaluation for more accurate financial statements.
With a new setup on the G/L account card, you can now run G/L Revaluations for accounts with transactions in foreign currencies. This enables you to generate a more accurate financial statement with little need to keep separate spreadsheets.
Enabled for: Users, automatically
Public Preview: Mar 2024
General Availability: Apr 2024
Feature Details
If you use general ledger accounts to register balance sheet items that are denominated in foreign currencies, a revaluation of the balances is often required before you produce financial statements for your business.
Until now, most businesses have used either a bank account or a vendor account to register and track such assets and transactions. They’ve had to keep the bank or vendor account separate from others, and to make it work they’ve had to maintain an expanded setup for posting groups.
The G/L Revaluation feature simplifies revaluations. For the general ledger accounts that you use for revaluations, you can turn on a general ledger account subledger that will hold the original currency value of the transaction and any adjustments you made using the Adjust Currency Exchange Rate batch job. Balances present in local currency (LCY) are revalued, which enables you to produce a more accurate financial statement with little effort.
Note
The G/L Revaluation feature might not meet all requirements for transaction and asset registrations that require revaluation. For example, for financial instruments, securities, leased assets, or if used for specific or large volumes of transactions or assets. Microsoft recommend that you discuss with your auditor whether you can use the feature.
Posting gains and losses during a currency exchange rate adjustment follows the normal posting routine. For example, it’s done for each setup on the currency card.
Note
The new feature doesn’t provide the ability to apply or unapply entries. Adjustments are done on a balance per currency basis.
My Opinion
Revaluation is another of the areas with which Business Central has surprised me, due to the lack of or poor functionality in certain areas. This enhancement sounds like it should plug one of those holes.
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